During the past 4 years investors for the most part doubled their money while placing their assets into precious metals.
Meanwhile during the same time, bond markets slightly outperformed equities, however neither held a candle toward gold and silver's performance.
During the month of September, Hong Kong's gold exports into China increased 23% (year over year) while up the previous month, August saw a 30% gain.
These exports of gold rose from 204 tons on September 30th 2011 to 582 tons on September 30th 2012.
China has been shedding US dollars as much as possible.
Now China is in second place, to Japan in US dollar holdings.
That's right now Japan is in the top slot for foreign ownership of the mighty greenback.
China has been insistent on selling off their dollars while accumulating more and more gold.
Those in China, who felt gold is just too costly, have been buying up silver.
The Chinese also understand every major central bank in the world including their own, are buying up sovereign bonds and using their individual printing presses to pay for it.
As more money continues entering into circulation against a fixed amount of real assets, prices will increase along with the rate of inflation.
Real assets can range from gold & silver and other industrial commodities such as diamonds, oil, platinum, copper or real estate, farmland, corn and wheat.
It is always a safe bet to say however that gold and silver are also considered exceptional hard currencies, with no counter-party risks.
In Dubai, traders are also receiving the message.
At the Dubai Gold & Commodities Exchange gold futures at the end of October rose 490% to 465,725 contracts.
It's All About Timing If you believe that the current prices (at the time of writing) of $1722.
00 per ounce for gold and $ 32.
60 per ounce for silver are high then watch in awe, as prices continue to escalate, in the months and years ahead.
Basic commodities such as food stuffs or gasoline will increase at an alarming rate.
However by comparison, these increases will be nothing, when measured against the value of gold or silver, as has been the case over the past 4 years.
Something we have yet to witness in the price of precious metals during the past decade is the formation of a price bubble.
However lately, there have been signs of evidence, a possibility, that now a bubble is forming, with a spike in precious metals.
This could happen should the bond markets see trouble, forming contagion which is already occurring in Greece & Spain.
Also a large presence in the numbers of investors, which could turn around and begin investing into the safe haven assets once again.
Preparation Is Everything It will be at that point when everyone (mainstream) believes that precious metals are the only place left to park assets, where they all jump in at once and buy buy buy.
This will be the definitive point, in time (not before) to cash out.
One thing for sure, it will be a while before that point in time arrives.
It's possible the day of reckoning will not arrive during Obama's watch.
However stay alert, because when that day does come, on or off Obama's watch, the time it takes you to re-act (sell) will be vital.
Be Prepared! Tom Genot -